Economics

Sukhoi Civil Aircraft to sue Armenia’s Armavia over $1.4 million debt

Sukhoi Civil Aircraft (SCAC) is ready to sue Armenian airline Armavia over the unfulfilled terms of a deal on SSJ-100 aircraft, the first Sukhoi Superjet in the airline’s fleet, and losses from the termination of the sale agreement, Russia Today reports.

The Russian aircraft manufacturer is planning to go to the International Commercial Arbitration Court, Gazeta.ru reports referring to an unnamed source in the company.

“The lawsuit will be filed in the next few days. The plaintiff’s claim totals around $1.385 million,” the source is quoted as saying.

The Armenian airline became the first customer of the Sukhoi Superjet-100 airliner.

Under the terms of the contract, the liner was mortgaged with SCAC until the full price was paid by Armavia. However the carrier failed to pay the full sum for the aircraft and decided to terminate the sales contract and return the aircraft to the manufacturer.

The airline sealed an amendment to the sale contract and returned the airplane to Sukhoi Civil Aircraft. According to a SCAC statement Armavia mortgaged the aircraft to third parties while it was in their possession.

The manufacturer hopes the International Commercial Arbitration Court will help solve the disparities.

Armavia halted flights on April 1 and launched bankruptcy proceedings. Armavia had 14 aircraft making more than 100 flights a week to 20 countries.

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